Microsoft Is King
The new most valuable company in the world by market cap is Microsoft: they finally overtook Apple. This news means very little as the difference between them is usually very small, but I thought this would be a great opportunity to look at both these companies.
Apple is having some struggles. IPhone demand is stalling after a few years with repetitive designs, more competition in China, and a decline in revenue year over year. I am not worried in the slightest for a couple of reasons. First, we do this every few years with Apple. While researching for this article, I came across headlines from two years ago that practically matched the ones published now, “Apple Facing Headwinds…” If you are not growing, you are dying in the market, and right now, it would appear that Apple is not growing, however, that seemingly accepted thought is foolish.
Apple fired its head of iPhone development earlier this year. A move like that, firing the lead man of your most important division is massively encouraging. First, Apple recognized the problem and recognized that Tang Tan, the man leading Apple design and development, was not the right man for the job, and then they addressed the issue. I believe Apple will find the right man for the job this time around, and if they do not, they have decades of brand recognition built up until they do find the right guy. Apple could release the same phone next year, only change the name, and people would still buy. Apple has some room to operate, and take risks, and I am optimistic for the future of their most important division.
The Apple Vision Pro is going to be massive. People seem to be extremely worried about the price of the Apple Vision Pro. They seem to be equating Meta’s headset to Apple’s, and that could not be further from the truth. Millions of consumers will buy Apple’s headset. Comparing Meta’s headset to Apple’s is like comparing a Volvo to a Ferrari; they are entirely different beasts. Apple’s headset is far more powerful and practical than Meta’s. Also easy to see is that Meta built an Xbox and attached it to someone’s face. Apple built a super-Mac and attached it to someone’s face. The Apple Vision Pro will take the world of VR/AR to new heights. Companies and offices will buy Apple Vision Pros, schools will buy Apple Vision Pros, government agencies will buy Apple Vision Pros, and so much more. This system isn’t for your rich uncle, although I know mine will almost definitely buy one; this is for your Silicon Valley Bros.
The Apple Car is real and will be huge. The Apple Car is a longer-term play, obviously, but I am nonetheless excited. We have seen Apple come into an industry and dominate before; take watches as an example, and I have no doubt they will do it again with cars. Not to build a strawman or anything, but I feel like most investors who would read that sentence would laugh at me, but I wholly stand by it. Apple has filed a ton of patents recently for car-related technology, and it could be within five years that we see people driving Apple cars. https://www.gq-magazine.co.uk/cars/article/apple-car-details for more information.
To make a long story short, Apple is a buy, as it has always been. I am not worried about Apple; I may never be.
I do not know what to say about Microsoft that has not already been said. In my opinion, Microsoft is the best company in the world. I love Costco, Apple, Berkshire, Disney, and others, but I believe that Microsoft’s ceiling, combined with its ability to work and reach its ceiling, makes it the best company on the planet. Microsoft’s AI capability, combined with the pre-existing infrastructure they have carefully laid out, is what makes Microsoft Microsoft. I already said that Apple is a buy, as it has always been, but in my opinion, Microsoft is literally the best company on the planet. I believe that when you are talking about the best company on the planet, there is no wrong time to buy.
These companies are two of the top five best companies in the world to own right now, and anyone who tells you otherwise does not know what they are talking about, or they are lying to you.
